I am setting up CamUniveral for the first time. I have activated the "web server", but I do not know which folder is seen by the web server or how one sets this. Is it under "wwwroot" as in the IIS web server?

The webserver has no root! The webserver don't support the display of html pages.
The webserver just supports the commands listed here: http://www.crazypixels.com/camuni-cam.htmThese commands are for direct camera handling and receiving pictures!

The sample htm files could be used local or from your webspace.
Start the webserver and open the cam_control.htm page direct local on your PC. With this htm page you can test direct all webserver commands.